Security Testing Market Size, Share, Growth & Industry Analysis, By Type (Application testing, Network testing, Device testing, Others), By Deployment (Cloud-based, On-Premises,), By Organization (Small & Medium Enterprises, Large Enterprises), By Industry, and Regional Analysis, 2024-2031

Market Definition

The market involves assessing systems, applications, and networks for vulnerabilities to prevent cyber threats. It focuses on identifying and addressing security weaknesses to ensure data integrity, confidentiality, and availability. This process helps protect digital assets from cyber threats such as hacking, malware, and unauthorized access.

Security Testing Market Overview

The global security testing market size was valued at USD 14.87 billion in 2023, which is estimated to be valued at USD 18.45 billion in 2024 and reach USD 88.14 billion by 2031, growing at a CAGR of 25.03% from 2024 to 2031. Increasing cyber-attacks, data breaches, and cybercrimes are driving the adoption of security testing as organizations implement proactive security measures.

Major companies operating in the security testing industry are VIAVI Solutions Inc., IBM, Open Text Corporation, Intertek Group plc, Checkmarx Ltd., DataArt, Contrast Security, Bugcrowd, Parasoft, HCL Technologies Limited, Cigniti Technologies (A Coforge Company), DXC Technology Company, Cobalt, NCC Group, and GitHub, Inc.

The adoption of cloud services is driving demand for security testing as businesses migrate data and applications to cloud environments. Ensuring robust security measures is critical to protect sensitive information from potential breaches.

Regular security testing is essential to identify vulnerabilities, maintain compliance and defend against evolving cyber threats. As cloud adoption continues to grow, the need for specialized cloud security testing services is expected to rise in turn driving market expansion.

• In July 2024, Horizon3.ai launched NodeZero Cloud Pentesting, an advanced solution designed to identify vulnerabilities in cloud environments like AWS and Azure.

Key Highlights:

1. The security testing industry size was recorded at USD 14.87 billion in 2023.
2. The market is projected to grow at a CAGR of 25.03% from 2024 to 2031.
3. North America held a market share of 33.24% in 2023, with a valuation of USD 4.94 billion.
4. The application testing segment garnered USD 4.74 billion in revenue in 2023.
5. The on-premises segment is expected to reach USD 48.84 billion by 2031.
6. The large enterprises segment had a market share of 54.12% in 2023.
7. The government segment is anticipated to witness a CAGR of 25.38% during the forecast period.
8. Asia Pacific is anticipated to grow at a CAGR of 26.03% during the forecast period.

Market Driver

"Increasing Cybersecurity Threats"

The rise in cyber-attacks, data breaches, and cybercrimes is driving the demand for robust cybersecurity measures. Organizations are actively investing in security testing to detect vulnerabilities before they are exploited. Sectors such as finance, healthcare, and government are adopting security testing services to protect critical assets and meet compliance requirements.

• In March 2025, VIAVI Solutions acquired Spirent Communications' high-speed Ethernet and network security business, expanding their product portfolio and strengthening its position in the growing cybersecurity industry.

Market Challenge

"False Positives and Overload of Data"

A significant challenge in the security testing market is the high number of false positives generated by security testing tools. Sorting through excessive data to identify real threats consumes time and resources.

Critical vulnerabilities may be overlooked due to prioritization issues. AI-powered security testing tools can help reduce false positives by improving the accuracy of vulnerability detection. These tools can also automate threat prioritization based on risk, ensuring security teams focus on the most critical vulnerabilities.

Market Trend

"AI and Machine Learning in Security Testing"

AI and machine learning are transforming security testing by enhancing threat detection and reducing false positives. These technologies analyze vast amounts of data and identify hidden patterns to improve vulnerability assessments.

Machine learning models continuously learn from new data and adapt to evolving threats for proactive security measures. As cyber threats evolve, AI-driven security testing solutions are becoming essential for organizations across industries.

• In February 2025, Astra Security raised USD 2.7M to enhance its AI-powered pentesting platform, helping businesses uncover vulnerabilities quickly. This aligns with the growing trend of AI-driven security testing, providing real-time, intelligent assessments to address threats in cloud and hybrid environments.

Security Testing Market Report Snapshot

Market Segmentation:

• By Type (Application testing, Network testing, Device testing, Others): The application testing segment earned USD 4.74 billion in 2023 due to increasing demand for secure software applications across industries.
• By Deployment (Cloud-based, On-Premises): The on-premises segment held 55.57% of the market in 2023, due to organizations preferring localized security control over sensitive data and infrastructure.
• By Organization (Small & Medium Enterprises, Large Enterprises): The large enterprises segment is projected to reach USD 47.51 billion by 2031, owing to higher cybersecurity investments and complex infrastructure requirements.
• By Industry (IT & Telecommunications, BFSI, Healthcare, Manufacturing, Government, Others): The government segment is anticipated to have a CAGR of 25.38% during the forecast period, due to increasing cyber threats and national security initiatives.

Security Testing Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

North America security testing market share stood around 33.24% in 2023 in the global market, with a valuation of USD 4.94 billion. North America dominates the market due to a high concentration of technology companies and a well-established cybersecurity infrastructure.

Moreover, the region's strong regulatory framework drives the demand for comprehensive security testing solutions. Additionally, the increasing cyber threats and data breaches drive businesses in this region to invest in advanced security testing solutions, in turn driving the market.

Asia Pacific security testing industry is poised for significant growth at a robust CAGR of 26.03% over the forecast period. Asia Pacific is emerging as the fastest-growing region in the market, driven by rapid digital transformation and increasing cloud adoption.

The region’s expanding tech industry, especially in countries like India, China, and Japan, fuels the demand for cybersecurity solutions. Rising cybercrime and the need to protect critical infrastructure leads to heightened awareness of security vulnerabilities.

As a result, governments and enterprises are making significant investments in advanced security testing, fueling rapid market growth across Asia Pacific.

• In December 2023, dSPACE and Argus Cyber Security partnered to enhance cybersecurity testing for automotive systems. This collaboration integrates Argus’s cybersecurity expertise with dSPACE’s simulation and validation solutions, strengthening protection against cyber threats in connected and autonomous vehicles.

Regulatory Frameworks

• The EU General Data Protection Regulation (GDPR) governs how the personal data of individuals in the EU is processed and transferred.
• In the U.S., the Federal Information Security Modernization Act (FISMA) is federal legislation that defines a framework of guidelines and security standards to protect government information and operations.

Competitive Landscape:

Collaboration between companies in the security testing industry has become essential to enhance threat detection and improve testing capabilities. By joining forces, key players are integrating their strengths and combining expertise in penetration testing, vulnerability management, and automation.

This collaborative approach ensures the development of more comprehensive and efficient security solutions, offering clients advanced protection against evolving cyber threats while reducing risks and costs.

• In June 2024, C2A Security and Drivesec formed a collaboration to enhance automotive product security testing. Their joint solution integrates WESETH test automation into the EVSec DevSecOps platform, streamlining vulnerability testing and offering a comprehensive product lifecycle security validation for efficient and secure development processes for automotive manufacturers.

List of Key Companies in Security Testing Market:

• VIAVI Solutions Inc.
• IBM
• Open Text Corporation
• Intertek Group plc
• Checkmarx Ltd.
• DataArt
• Contrast Security
• Bugcrowd
• Parasoft
• HCL Technologies Limited
• Cigniti Technologies (A Coforge Company)
• DXC Technology Company
• Cobalt
• NCC Group
• GitHub, Inc.

Recent Developments (M&A/Partnerships/Funding)

• In January 2025, CHEQ acquired Deduce to enhance its go-to-market security platform. The integration of Deduce's AI-driven identity fraud prevention technology strengthens CHEQ's ability to secure digital interactions, providing robust protection against evolving fraud tactics and safeguarding sensitive customer data.
• In November 2024, Symbiotic Security secured USD 3 million in seed funding to launch its real-time security solution for software development. The platform integrates detection, remediation, and just-in-time training directly into the development process enhancing developer efficiency without disrupting workflows.
• In September 2024, Checkmarx partnered with ZAP to enhance dynamic application security testing (DAST) for enterprises.